Every year the solar energy industry is expanding its horizons across the United States. By installing a solar photovoltaics (PV) system, you can safely supply energy to your home while protecting the environment. Additionally, it turns out that when it comes to selling your house, it can increase the overall value of your property. A recent study by Zillow concludes that having a home with solar panels can increase its value to 4.1% or more.
Solar Panels are Adding Value to Homes
One of the main reasons why houses with solar energy systems sell for more than those without a solar PV system is that they can provide substantial savings in energy consumption. For homeowners who know their energy consumption is high, these future savings are worth the investment. When assessing the long-term financial value, they are increasingly open to the premium of a solar-ready home.
Solar panels are a worthwhile investment. The profitability of installing solar panels compensates its cost and also the revaluation of the house. It is essential to weigh your options regarding price/quality ratio rather than just the cost.
Having a more substantial system generally boosts your home value with higher wattages. However, the wattage generated by a solar installation does not proportionally raise the value of a home. A solar setup that meets your energy needs sufficiently is enough to recover the price of your installation. Installing premium solar panels can optimize your solar array’s performance, increase the overall efficiency, and result in higher resale value.
You may be interested in checking out our Solar Kit Guide for Instant Solar Design and Quote!
Factors Influencing The Resale Value
Some states around the country offer more substantial incentives when buying solar houses. They may offer a break on property taxes if you own a home with a solar energy system installed.
Here are some of the factors that affect a home's resale value:
The region location + state incentives for renewable energy.
The local price of electricity and how much energy you will be saving.
What type of property you own.
What the solar installation prices and solar power system replacement value are.
Understanding solar technology and what are the benefits of a solar panel system.
You need to know whether the solar panels are being leased or owned.
Incentives for Home Buyers
When owning a solar PV system, you will be able to parlay your solar power investment and increase the property’s market value when the electrical utility grid services’ prices rise. Having a customized solar panel installation, you could potentially receive a 200% return, increasing the home value when it comes time to sell.
Savings from Day 1 on your electric bill
Yearly savings throughout the lifetime of your solar panel system (up to 25 to 30 years)
However, you put it, buying a house with solar is a sound investment. When having a solar PV array, you can expect the grid-tied system to pay for itself 2-3 times or more in tax breaks (solar incentives/federal tax credits) and energy savings.
Make sure you know who the manufacturers of your solar equipment are? What is their bankability? What are the warranty periods on the PV modules, solar inverters, etc.? Typically, solar PV panels have a warranty of 20-25 years while inverters have a 5-10 year warranty. Are your solar panels DC or AC modules? What is the percentage of energy generated?